Tesla: the Two Equally Non-conventional Scenarios for the Company to Stay on the Right Track

May 21, 2021

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Tesla: the Two Equally Non-conventional Scenarios for the Company to Stay on the Right Track

This past tumultuous week proved that cryptos, somehow, synced with the growth stocks rather than the defensive assets. Why is this unusual behavior? The idea was to punish the clueless crypto hipsters for their light minded overreliance on “experimental, unapproved and inappropriate” assets, but it turned out that the traditional equities suffered as well.

In fact the vast majority of Nasdaq fintech companies are now, one way or another, rely on cryptos and deregulated finances in their daily activities. Some of them – like Tesla, PayPal or Visa – are already too big to fail, therefore such apparent attempts of “surgical disjointment of the Siamese Twins” of high tech equities and crypto assets proved to become next to impossible.

Moreover, recently joined S&P index Tesla, being a poster child of the millennial investors and certainly a great company in many ways, is now apparently facing difficulties in its further exponential growth as new markets become less and less accommodating for electric vehicles.

S&P cannot afford to lose Tesla as one of its bellwether stocks, and market regulators ought to cherish every and any idea of its restless CEO Elon Musk who is busy discovering new pathways to ensure sustainable growth of its business going forward. Yes, that possibly includes deeper penetration of that alternative crypto universe.

Beyond that, there is very little to contemplate apart from entering new physical markets for Tesla innovative production. Today’s sensation is that the great electric vehicle producer is contemplating setting up a manufacturing base in a country known for its authoritarian government and not-so-transparent corporate law. Yes, we speak about Russia. According to Bloomberg report, CEO Elon Musk while speaking at a Russian government-sponsored event for students via video link, said "Over time, we will look to have factories in other parts of the world, potentially Russia at some point". Musk also acknowledged the abundance of talent and energy in Russia and encouraged people to strive to make the future better than the past and to be optimistic about the future.

So what is the best new path for Tesla as it is reaching its level of saturation – adapting cryptos or building Gygafactory in countries like Russia? Only time will tell!